EUR/USD pinned to $1.09

As is it was expected the European Central Bank monetary policy remained unchanged and markets didn’t react on this news.  

The European Central Bank made no changes to monetary policy and kept the deposit rate at -0.3% and the main refinancing rate at 0.05%.

The euro was not very volatile after the decision, as expected, and the EUR/USD pair was spotted directionless around $1.09.

The focus of investors will now shift to Mario Draghi's presser, which starts shortly. This press conference might bring some bigger movement for the EUR/USD pair.

Considering the latest surge in the euro since the last meeting in December, Draghi is expected to sound dovish and talk the euro down. If the presser brings a neutral tone, the EUR/USD pair might very well breach the $1.1040 resistance and continue higher, which would be negative for the ECB. Therefore, risks are on the downside for the euro, heading into the presser.

From the US dollar point of view, jobless claims are due later in the day, along with the Philly Fed Manufacturing Index for January, which should improve from -5.9 to -5.0.

Some volatility might come after Friday's existing home sales for December, which are projected to increase rapidly to 5.20 million, from 4.76 million previously. This would represent a 9.2% monthly gain.

The pair continues to consolidate around the $1.09 mark and while it remains stuck between $1.08 and $1.1040, the trend is neutral, and choppy trading is expected to prevail in the coming days.